AUDUSD fate lies upon US inflation data.
“Aussie dollar bulls will keep an eye on key inflation data from the US for more hints with regards to Fed’s policy tightening.”
AUDUSD takes a breather after extending its gains for the past few weeks as investors shifts their focus towards key US economic data. For the week, investors will place their attention upon inflation data for both consumer and producers which may provide more signals with regards to Fed’s policy tightening pace. Nonetheless, interest rates divergence in between US and Australia will continue to cap any substantial bullish move for the pair.
Quick recap of AUDUSD
While the pair experienced substantial rebound for the past few weeks, it is still subjected to downward trendline.
AUDUSD Weekly Technical Analysis
From weekly perspective, the pair continues to struggle near 0.7000, which coincides with the downward trendline.
AUDUSD Daily Technical Analysis
From daily perspective, the pair lacks momentum to thrust pass 0.7000, an indication for a possible pullback.
Trading Idea
Order: SELL STOP
ENTRY: 0.6840
STOP LOSS: 0.6915
Target 1: 0.6755
Target 2: 0.6725
ZFX Analyst’s Comment
Overall structure of AUDUSD is skewed towards the downside as 0.7000 caps any substantial gains. We expect the pair to extend its losses in the mid-term, with 0.6850 acting as the confirmation level.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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